Ontario metals recycler recently placed under temporary
receivership has been put under full receivership, and its
owner is now believed to be out of the country.
The businesses owned
by Rantel Boparaiwhich include Scrapmen & Boparai
Trading Co.earlier this month were put into temporary
receivership under the Canadian Bankruptcy and Insolvency Act
for defaulting on Canadian $17 million ($15.5 million) in loans
(amm.com, Jan. 7), according to documents filed in the
Ontario Superior Court of Justice.
The move came after
the bank initiated an investigation into the companies
affairs after it sought additional funds to expand.
During a routine
review of the companys financial information, the bank
learned that the company reported sales of C$64.6 million
between January and September but only deposited C$7.6 million
during this time, including just C$3,964 in September,
according to the latest documents.
Since the businesses
were placed into receivership, Boparai hasnt contacted
the appointed legal counsel and the counsel has been unable to
reach him. The receiver has been advised but unable to confirm
that Boparai is now out of the country. A representative who
went to Boparais residence since the initial filing was
advised that he is no longer living there.
receivers update suggests that Boparai had been planning
for some time to wind down and exit operations without
informing the bank, and terminated employees before the
bankruptcy proceedings were initiated by the court.